Retailers hope sales perk up in August
— -- Retailers are hoping back-to-school buying this month will offset sluggish sales in July.
People usually spend more money in August as the school year gets closer, says Ellen Davis, spokeswoman for the National Retail Federation. "Parents view back-to-school shopping as a necessity, not a luxury," meaning they'll do it but will put it off as long as they can. "Most college students haven't even started their shopping yet."
Back-to-school season is the second-most-important selling period for retailers, right behind the holiday season in November and December, the NRF says. Families with school-age children say they expect to spend an average $563.49 this back-to-school season, about $36 more than last year, according to a BIGresearch survey conducted for the NRF.
There's still some time left in the back-to-school season, depending on when school starts. About 45% of families planned to start their shopping three weeks to a month before school starts, the BIGresearch survey found. Clothing stores could see an increase in August sales as they put more clearance merchandise on the racks, says retail analyst Bob Gordman, president of the Gordman Group. "Sometimes, they sell a lot of inventory early in the summer season and don't have as much in July," which can depress sales.
The reasons for July's sales results are complicated, retail analysts say. The slumping housing market and a difficult economy have consumers stretching their dollars as much as possible, says Bob Buchanan, industry group leader for A.G. Edwards. "People are not finding the best values at the mall."
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